The sharp sell off sent the SP -Day in oversold.
So we can expect a bounce to develop, after the sell off that could extend to 1,900 or slightly below. It will be interesting if the bounce can regain the upper end of the SMA 50 (1951) or not. If not the rally is in trouble.
The chance is on the downside and there is clear break of the neckline at 1,965.
Also the VIX broke the neckline at 15.38 and now sits at 16.95…just under the algos neutral zone top at 17.09
This is not (yet) the end of the rally. It is just the start of the battle between Bulls and Bears.
investorpolitico 